At the news conference Monday afternoon, Mayor Kevin Johnson celebrated the announcement, but said he will remain cautiously optimistic.

"It's definitely been a mountain that I've climbed. I think we're getting closer to being at the top, but we're not there yet. And as all of us has said, we're not going to celebrate prematurely," he said.

However, not everyone is hoping that the downtown area will transform into a new arena.

Bob Blymyer of the Sacramento Taxpayers Association said the financial investment from the city is too high, and argued that other city priorities will take a backseat, including the Railyard Project.

"What are you not going to be able to do if you do this thing?" Blymyer said, emphasizing the opportunity costs associated with focusing on the Kings. "We all know for sure the Downtown Plaza is going to be downsized considerably instead of rebuilding, and creating a really effective downtown mall."

But supporters such as state Sen. Ted Gaines believe a new arena will pay off in terms of job creation and revenues -- and said moving forward with the arena plan will be the next focus.

"You want to make sure you get the approvals quickly; that you've addressed any sort of environmental concerns quickly," Gaines told KCRA 3. "And get it built as fast as you can."

City leaders said that speed must be tempered by careful decision making.

"Developing half-a-billion-dollar stadium is not a real easy proposition for the development team and the city," Sacramento Councilman Allen Warren said. "So, we're going to work really hard to make sure we keep that process as smooth as possible."

The NBA Board of Governors will convene the week of May 13 for an official vote.

Israeli Prime Minister Benjamin Netanyahu warned Tuesday that a proposed agreement between world powers and Iran was "a bad deal" that would not stop Tehran from getting nuclear weapons -- but would rather pave its way to getting lots of them and lea...